Singapore developer seals Australian hotel deal

An offshoot of Singapore’s largest private property developer,
Far East Organisation
, has struck its first Australian hotel deal.

The Singapore listed group, Far East Orchard (FEOrchard), has formed a venture with Singapore’s Straits Trading Company to run and acquire Australian hotels.

In its first move, the venture has picked up three local properties – Rendezvous Hotel Perth, Rendezvous Studio Hotel Perth Central and Rendezvous Grand Hotel Melbourne – worth about $178 million from STC.

The venture will also own Rendezvous Hotels International Private Limited, which operates STC’s hospitality management business.

Far East Orchard will also transfer its existing hospitality management business into the joint venture company, in a move aimed at allowing it to expand beyond Singapore and operate overseas third party hospitality assets.

FEOrchard group chief executive, Lucas Chow, said: “Once we complete this proposed transaction, we will have an immediate regional footprint that covers mainly Singapore, Malaysia, Australia and New Zealand."

The group wants to grow beyond Singapore and Malaysia, into Australia and New Zealand, where 11 out of the 13 STC-managed hotels are situated.

The chief executive for Far East Hospitality, Arthur Kiong, said the group was excited at the opportunity to manage a portfolio with more than 6000 rooms in 30 hotels and serviced residences across a regional footprint.